Offshore trusts are mysterious vehicles that many affluent investors think they should learn about but don't know where to start. Also, offshore trusts have been miscategorized as expensive luxuries, appropriate only for the super-wealthy. Thanks to the innovative work of Passport Financial of Austin, Texas, offshore trusts are no longer mysterious, expensive or inappropriate for the average investor.
What is an offshore trust? Most of you are familiar with the concept of trusts. Trusts are one of the more common estate and tax planning vehicles used by people with more than $600,000 in assets. A properly structured trusts is one of the most flexible and valuable tools an investor can use. Offshore trusts are no different than U.S. trusts except that they are domiciled in a foreign country.Why would someone use an offshore trust instead of setting up a trust in the United States? Three reasons:
1. ASSET PROTECTION. In our overly litigious society, a lawsuit could wipe out a lifetime of hard work and savings. Even trivial grievances could result in huge awards against you. If you get the wrong jury, hire the wrong lawyer or get caught on the wrong side of political fashion, you could be wiped out.
When assets are placed in a trust, you no longer own those assets. The trust is now the owner of the assets, not you. You or whoever you designate would, of course, be the beneficiary of the trust. That person would still maintain control over the assets and be able to access any of the funds as you saw fit. Nothing really changes when you put assets into the trust except for the name on the title.
Trusts protect you against lawsuits. Any judgment against you personally doesn't allow a creditor the right to go after the assets of the trust. In fact, many potential plaintiffs would abandon their suit against you once they discovered that your assets were safely hidden in a trust.
Offshore trusts offer even more protection if they are domiciled in countries where financial lawsuits are discouraged. believe me, many other countries offer greater protection for defendants and their assets. America is the greatest country in the world, and I'd rather live in America than anywhere else. Unfortunately, America isn't the best place in the world for my money, so it may be better off living somewhere else.
2. PRIVACY. Financial privacy in the United States is nearly impossible. Your wealth is visible to anyone, individuals and the government, determined enough to investigate your situation. "It is too easy for someone sizing you up for a lawsuit to learn the details of your bank account, your investments and how you spend your money," warns Terry Coxon, president of Passport Financial.
Trusts, by design, are private vehicles. A lot of information about you is public knowledge, such as wills, auto registrations and real estate ownership. Any asset held inside a trust, however, cannot be traced back to you. Offshore trusts offer substantially more privacy than U.S. trusts.
3. REDUCING TAXES. Trusts can help dramatically reduce both income and estate taxes. Income taxes may suck away more than one-third of your investment profits, but properly constructed and managed offshore trusts can completely defer the gains on your assets during your lifetime.
Estate taxes can take up to 55 percent of what you leave to your heirs (up to 80 percent of what you leave to your grandchildren). Offshore trusts can avoid much, if not all, of the unnecessary estate taxes. After your death, an offshore trust will "disconnect" from the U.S. tax system. That means that the appreciation built up during your lifetime will never be taxed when it's distributed to the beneficiaries.
WHY DOESN'T EVERYONE USE AN OFFSHORE TRUST? Many investors consider offshore trusts to be too exotic or too mysterious. Setting up an offshore trust isn't easy or quick. Offshore trusts can be very expensive to set up.
That was the old days. Passport Financial has developed a program that takes all the mystery out of offshore trusts and makes it both easy and inexpensive to set up an offshore trust account. Passport Financial's Offshore Trust Information and Action Package is a four volume "how-to" course that takes you through each individual step on how to determine if offshore trusts are appropriate for you and then how to set up your own offshore trust. The package is complete - it includes everything you need to understand and actually establish a valid, lawful offshore trust.
Volume 1's Passport To Financial Safety gives you all the fundamentals about offshore trusts - what they are, how they protect assets and cut taxes and how exactly to set one up in a way that leaves you feeling confident about what you've done and confident about your financial security.
Volume 2's Protective Trust Guidebook provides extensive additional information and technical details on the topics covered in Volume 1, including additional ideas for estate planning.
Volume 3's Legal Opinions presents a formal professional opinion from a U.S. law firm, an international law firm and a U.S. certified public account.
Volume 4's Annotated Standard Terms of Trust gives a section-by-section explanation of the trust agreement. Included is a form and instructions booklet with all the materials you need to establish an offshore trust.
You'd expect something like this to cost thousands of dollars, which is at least what you would spend hiring a legal team to set up an offshore trust for you. However, Passport Financial's offshore trust package is a bargain at $95. It also comes with an unconditional money-back guarantee if you aren't completely satisfied.
To order the Offshore Trust Information and Action Package, call 800-531-5142.